Depreciation auto 4797

[ljwalters]

The program is calculating recapture on vehicle that was not sold. The prior depreciation is not showing the same as last year. Last years percentage is much greater.

By the way this is an S corp.

if I overide the prior it still calculates a recapture.

This is only doing the bad calculation for one of the vehicles. The other calculates fine.

Insight please.

[rfassett]

Did the percentage of use fall below 50% this year from a higher than 50% use in the prior year? If so, the system is recapturing the excess depreciation taken in the prior years.

[ljwalters]

Yes. Thanks

[joanmcq]

Also make sure your prior year percentages are correct.

[ljwalters]

The prior year percentages were correct. Usually travels all arount country promoting his wares. At shows and establishments. This year because of ailing wife he just used internet and work of mouth.